Question - Prepare the necessary journal entries for Maxwell Company. The company's accounting year ends on December 31.
1) On October 31, 2009 the company received a $10,000 note from Gina Courtney in payment of her account. The note is due on April 30, 2010 and it bears interest at 12%.
2) Record any necessary adjusting entry on December 31, 2009.
3) On April 30, 2010 Gina Courtney paid the note, including the interest.
4) Independent of your answer to part 3), records the entry on April 30, 2010, assuming Gina Courtney dishonored the note.